Minnesota State, the system of 26 state colleges and seven state universities, released the results of a study that estimates the impact of Central Lakes College on the regional economy to be $198.1 million and 1,482 jobs.
“At Central Lakes College, our focus on student success both transforms students’ lives and dramatically impacts regional and state economies,” said Dr. Hara Charlier, President of CLC. “Our operations and the economic activity generated by our faculty, staff and students touch virtually every corner of our regional economy including healthcare, manufacturing, transportation, education, hospitality and much more.”
The study was commissioned by Minnesota State and was conducted by Parker Philips, a nationally recognized consulting firm specializing in economic impact analysis.
“An economic contribution analysis is an objective way to measure the significance of an organization in the regional economy; it is a useful tool that policymakers can use to inform their decisions,” said Nichole Parker, President of Parker Philips. “The numbers speak for themselves — Central Lakes College clearly is an important contributor to the regional economy.”
The analysis considered the direct spending on operations, pay, benefits, and capital projects by Central Lakes College and the estimated increase in demand for goods and services in industry sectors that supply or support the college. The study also measured the effect of student spending and the induced effect of increased household income.
A key result of this activity is that CLC supports and sustains 1,482 jobs, including direct employment by the college and indirect and induced jobs created by supply and equipment vendors, contractors, and laborers for the construction and renovation of facilities, and jobs created in the community at hotels, restaurants, and retail stores in support of the college’s faculty, staff, students and visitors.
Parker Philips also calculated tax revenues generated by this level of economic activity, including sales, property, personal income, and corporate income taxes, concluding that CLC generates approximately $16.1 million in tax revenues for state and local government.
Further, the study concluded the value of the increase in productivity that the degrees awarded by CLC yield throughout the careers of the graduates. Assuming a 40-year work life, the education received by these graduates will yield additional state income of $66.5 million (future value, discounted and adjusted to account for such factors as foregone income while attending school and outmigration).
“Central Lakes College makes a long-term contribution to the regional economy with every talented graduate who joins the workforce,” said Charlier.
Statewide, all Minnesota State operations, including all seven state universities and 26 community and technical colleges, plus the spending of its faculty, staff, and students, had a total statewide economic contribution of $8.4 billion. This activity generated an estimated 62,125 jobs in the state.
The economic contribution report for Central Lakes College is available at MinnState.edu/impact.